Online furniture shop, Urban Ladder has secured its second round of funding amounting to $21 million (Rs 120 crore) to grow and further strengthen its position as market leader in the furniture segment. The investment led by HongKong based asset management firm, Steadview Capital, also includes its current investors like SAIF Partners and Kalaari Capital.
“Product design and good customer experience have been our key differentiators in the market, and have helped us establish our dominance in the country. We will continue to strengthen these aspects with a focus on innovative technology, which will further elevate customer experience,” said Ashish Goel, CEO & co-founder of Urban Ladder.
“As we grow, we want to build a team of smart people who are excited to be a part of a journey that will revolutionise the furniture industry globally. We aim to double our employee base in the next six months,” said Rajiv Srivatsa, COO & co-founder, Urban Ladder.
With the aim of building beautiful homes, Urban Ladder was launched in July 2012 by Goel and Srivatsa and had received funding of $1 million from Kalaari Capital in August 2012 and $5 million by Saif Partners in November 2013. Currently, it offers more than 1,000 products across 25 product categories in seven leading cities of India.
Its expansion plans include widening the product range and services to about 25-30 cities by March 2015.
Ravi Mehta, MD of Steadview Capital, said, “Furniture is a highly fragmented and unorganised space, and we believe Urban Ladder is well positioned to leverage technology in order to become the leading furniture company in India. Their focus on customer experience and innovative product offerings stand out and we think very highly of the founders and the team they have built around them.”
Earlier, Steadview Capital has funded other companies like Page Industries, Jubilant Foodworks, Shriram City Union and Olacabs.
When most of us talk or think e-commerce, we relate or point to electronics and clothing mainly, and some other product categories. But the scenario is changing now. With even costly consumer durables like washing machines and refrigerators being sold online, furniture is one of the popular and potential product categories too.
The funding received by Urban Ladder is testimony to that. Consumers are now open to the idea of “taking the risk” of seeing pictures online and buying furniture based on the specifications and descriptions mentioned. With added features like installation and free delivery, its definitely worth the shot to browse from the convenience of home/office desks and buy them as compared to the physical trip to a furniture shop.
Besides competing with horizontal players like Flipkart, Snapdeal and Amazon, Urban Ladder’s main competitors are Fabfurnish and Pepperfry. Pepperfry secured funding of $16 million (Rs 95 crore) from Bertelsmann India Investments, the strategic investment arm of the international media company Bertelsmann in India with existing investor Norwear Venture Partners.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!